The federal government has finally concluded a $25 billion deal with B of A, Wells Fargo, JPMorgan Chase, Citigroup, and Ally Financial that’s intended to correct foreclosure and mortgage loan servicing abuses.
The deal was announced earlier this morning.
Forty-nine states agreed to the deal; Oklahoma was the lone holdout and will receive no money.
The money will be doled out to participating states to be used for refinancing underwater mortgages, refinancing at lower interest rates, anti-blight programs, forbearance for unemployed borrowers, short sales, and other programs.
If you think this will be a long-awaited bonanza for your personal benefit, think again.
This is a massive federal program and there will be numerous, complex, and confusing criteria for anyone who expects to benefit from it.
It sounds like a lot of money, but you can expect it to be relatively miniscule for the average homeowner by the time the money gets distributed.
The Obama administrations is claiming that the settlement will help up to one million homeowners.
The number of borrowers who have experienced foreclosure or are currently facing foreclosure far exceeds that number.
Source: MSNBC.com article